Australia-Slower demand for grain fed cattle.

AUSTRALIA-POOR DEMAND FOR BEEF.

WEAKER demand for beef as a result of the global financial crisis is to blame for a slight decrease in cattle numbers, new figures show.

The latest Australian Lot Feeders Association and Meat and Livestock Australia survey shows there was a 10 per cent decrease in cattle numbers on feed in the March quarter.

Numbers decreased in NSW and Queensland while the smaller lot-feeding states, Victoria and Western Australia, increased in line with normal seasonal patterns.

ALFA president Jim Cudmore said the decline was not surprising given prevailing market conditions.

"The global financial crisis, in particular, continued to create uncertainty in the export market place, with buyers unwilling to commit to forward purchases," he said.

Analysts said the fall in the value of the Australian dollar meant the potential to compete strongly in Japan and Korea was improving.